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Pro-poor Growth: Concepts and Measurement with Country Case Studies

Author

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  • Nanak Kakwani

    (International Poverty Center, United Nations Development Programme.)

  • Hyun H. Son

    (Departmetn of Economics, Macquarie University, Sydney, Australia.)

Abstract

This paper looks into the interrelation between economic growth, inequality, and poverty. Using the notion of pro-poor growth, we examine the extent to which the poor benefit from economic growth. First, various approaches to defining and measuring propoor growth are scrutinised using a variety of criteria. It is argued that the satisfaction of a monotonicity axiom is a key criterion for measuring pro-poor growth. The monotonicity axiom sets out a condition that the proportional reduction in poverty is a monotonically increasing function of the pro-poor growth measure. The paper proposes a pro-poor growth measure that satisfies the monotonicity criterion. This measure is called a ‘poverty equivalent growth rate’, which takes into account both the magnitude of growth and how the benefits of growth are distributed to the poor and the non-poor. As the new measure satisfies the criterion of monotonicity, it is indicative that to achieve rapid poverty reduction, the poverty equivalent growth rate—rather than the actual growth rate—ought to be maximised. The methodology developed in the paper is then applied to three Asian countries, namely, the Republic of Korea, Thailand, and Vietnam.

Suggested Citation

  • Nanak Kakwani & Hyun H. Son, 2003. "Pro-poor Growth: Concepts and Measurement with Country Case Studies," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 42(4), pages 417-444.
    • Handle: RePEc:pid:journl:v:42:y:2003:i:4:p:417-444
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    File URL: http://www.pide.org.pk/pdf/PDR/2003/Volume4/417-444.pdf
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    References listed on IDEAS

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    4. Dorothée Boccanfuso & Luc Savard & Antonio Estache, 2013. "The Distributional Impact of Developed Countries’ Climate Change Policies on Senegal: A Macro-Micro CGE Application," Sustainability, MDPI, vol. 5(6), pages 1-24, June.
    5. Gbetoton Nadege Djossou & Gilles Quentin Kane & Jacob Novignon, 2017. "Is Growth Pro‐Poor in Benin? Evidence Using a Multidimensional Measure of Poverty," Poverty & Public Policy, John Wiley & Sons, vol. 9(4), pages 426-443, December.
    6. Simin SEURY, 2009. "Inward Foreign Investment, Corruption and Firm's Ability: Firm-level Evidence from the Transition Economies," EcoMod2009 21500083, EcoMod.
    7. Dorothée Boccanfuso & Jean Bosco Ki & Caroline Ménard, 2009. "Pro-Poor Growth Measurements in a Multidimensional Model: A Comparative Approach," Cahiers de recherche 09-22, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    8. Eliseo Díaz González & Jorge Fabián Orozco Lalo, 2019. "Crecimiento pro pobre en México," Ensayos de Economía 18299, Universidad Nacional de Colombia Sede Medellín.
    9. S. M. Naseem, 2012. "A Review Of Studies On Poverty In Pakistan: Origin, Evolution, Thematic Content And Future Directions," PIDE Books, Pakistan Institute of Development Economics, number 2012:1 edited by Rashid Amjad.
    10. Ikram Ali & Armando Barrientos & Abdul Saboor & Atta Ullah Khan & Jazib Nelson, 2017. "A Decade of Sub-national Pro-poor Growth in Pakistan," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 133(1), pages 47-65, August.
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    12. Pouw, Nicky R.M. & Rohregger, Barbara & Schüring, Esther & Alatinga, Kennedy A. & Kinuthia, Bethuel & Bender, Katja, 2020. "Social protection in Ghana and Kenya through an inclusive development Lens. Complex effects and risks," World Development Perspectives, Elsevier, vol. 17(C).
    13. Harmáček, Jaromír & Syrovátka, Miroslav & Dušková, Lenka, 2017. "Pro-poor growth in East Africa," The Quarterly Review of Economics and Finance, Elsevier, vol. 64(C), pages 82-93.
    14. Hammill, Matthew, 2007. "Growth, poverty and inequality in Central America," Estudios y Perspectivas – Sede Subregional de la CEPAL en México 5025, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    15. Kifayat Ullah & Abdul Qayyum Mohsin & Abdul Saboor & Saranjam Baig, 2020. "Financial Inclusion, Socioeconomic Disaster Risks and Sustainable Mountain Development: Empirical Evidence from the Karakoram Valleys of Pakistan," Sustainability, MDPI, vol. 12(22), pages 1-26, November.
    16. Adeniran, Adedeji & Uneze, Eberechukwu, 2015. "Explaining Sectoral and Spatial Variations in Growth Pro-poorness in Nigeria," MPRA Paper 82406, University Library of Munich, Germany.

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